Why Is HR Such A Challenge For Luxury Brands In China?

Richemont Recently Opened “Retail Academy” In Shanghai

Though it’s the world’s second-largest luxury market, and one that continues to entice premium brands to expand inland while opening lavish flagships in Beijing and Shanghai, China’s high-end sector lags far behind Europe, Japan and North America in one major aspect: customer service. With a dearth of seasoned local talent — and a historical, cultural and societal dismissal of the service industry — virtually every major brand has found HR one of the most challenging parts of doing business in China. In response to these difficulties, we’ve recently seen some luxury groups take matters into their own hands, with Richemont opening its own “retail academy” in Shanghai this March.

This week, the series “Thoughtful China” takes a look at the particular HR difficulties facing brands operating in China’s luxury industry, and what they can do to avoid the usual customer service pitfalls:

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Marketing, Retail